Retiring involves not only new schedules, but also a new place to stay. According to a study made by Merrill Lynch in 2014, about 64 percent of retirees aged 50 or more have either moved or made plans to move post retirement. A few experts recommend that such a move is better done sooner and not later. Nancy Skeans of Schneider Downs Wealth Management Advisors said that a person aged above 80 will be unable to take such decisions.
Downsizing the house can be considered for a number of reasons. In a few cases, it should be done even prior to retirement. Life can be much easier when you downsize. Judith Chipps of Merrill Lynch says that most individuals prefer to stay in their own residence. Some houses can make this extremely difficult. To give an example, two story houses are unsuitable for people suffering from bad knees. For such people, selling off their two story house and buying a single one makes a more sensible choice. Other than climbing the stairs, maintenance and upkeep of the house can be an impossible task. If a person believes that the house will not be suitable in old, it makes sense to move to a new one at 60 and not at 80 years old.
Moving when one is too old could be a frightening event for a senior person, making him or her stay in the current address. This may cause acute inconvenience to other members of the family. The elderly should not stay in an environment considered unsafe and unsuitable. In fact, most people who moved houses later have confessed that they should have moved to their new address much sooner.
Good for finances
Moving may help in the financial sector too. The absence of a regular paycheck could put a strain on financials. Mortgages will be harder to get. Even large amount of savings do not help matters in such a case. Financial institutions may not be willing to consider real estate assets post the 2008 recession. Another excellent reason to downsize is when you believe that it will be hard for you to maintain your current house post retirement. There is no requirement to hold on to a house for a lengthier amount of time to get a higher price. Most people make this mistake. In fact, it is wiser to sell a bigger house and buy a smaller house with the proceedings. Boost the retirement fund with the money.